Tribunal approves settlement in matter of
alleged market division involving mining bags

The Tribunal has approved, as an order, a consent agreement between the Competition Commission and two companies involved in manufacturing and distributing underground mine support bags (known as cementitious polypropylene-based mining bags).
 
The Commission alleged that around 2009, Timrite (Pty) Ltd and Tufbag (Pty) Ltd concluded a Product Supply Agreement in terms of which Tufbag had an exclusive right to manufacture mining bags and Timrite had an exclusive right to distribute and on-sell mining bags manufactured by Tufbag.
 
It was the Commission’s view that this conduct may have amounted to market division by allocating specific types of services, in contravention of the Competition Act.
 
In terms of the settlement Timrite and Tufbag have agreed to pay, without prejudice, a fine of R1 000 000 (one million Rand). However, the companies do not admit that their conduct contravened the Competition Act. 
 
The companies have also agreed to: refrain from engaging in any prohibited practice in future or any conduct that may contravene the Competition Act; circulate a statement, summarising the content of the agreement, to their managers and directors; and implement and monitor a competition law compliance programme.